Business
Full Year Trading Update and Notice of Results
Full Year Trading Update and Notice of Results.
About this update from Gattaca Plc
[{"type":"text","content":"\n \n \n RNS Number : 2755T\n Gattaca PLC\n 17 July 2020\n \n \n \n 17 July 2020\n \n Gattaca plc\n (\"Gattaca\", \"the Group\" or \"the Company\")\n \n Full Year Trading Update and Notice of Results\n \n \n Gattaca plc (LSE-AIM: GATC), the UK's leading specialist Engineering and Technology recruitment business, today provides the following trading update for the year ending 31 July 2020.\n \n Summary\n \n \n \n \n \n ●\n \n \n \n Trading during April, May and June 2020, reflecting the impact of the UK Government measures due to COVID-19, has been 41% below last year\n \n \n \n \n \n ●\n \n \n \n Significant action taken to improve liquidity; the Group is now in a net cash position with strong working capital and liquidity. New covenants agreed with principal lender, HSBC, through to July 2021\n \n \n \n \n \n ●\n \n \n \n The Group-wide Improvement Plan has been accelerated, with particular focus on improving sales impact and client service, and on cost reduction\n \n \n \n \n Performance and trading\n \n Whilst the COVID-19 pandemic has impacted Group performance, trading over the period has been stronger than the Board's initial expectations following the imposition of the UK-wide lock-down. Trading during April, May and June 2020 has been 41% below last year (contract 36% and perm 52% lower).\n \n Overall, continuing operations' Net Fee Income (NFI) for the year ending 31 July 2020 is expected to be in the region of £54m (FY 2019: £69m), approximately 22% below prior year. Previous consensus forecasts were £64m. The majority of the shortfall is in UK NFI.\n \n The Group's international operations have performed better than expected, having implemented cost reductions over the last few months. Our China business is now operationally closed.\n \n During this period, the health and safety of our colleagues has been our key priority. All staff are working remotely and were fully operational within a few days of the lock-down announcement and we continued to win new business both in contract and permanent recruitment. In the UK, we have utilised the Government furlough scheme and the Board, executive management and all staff have taken a temporary 20% salary reduction for a period, with the staff having now been returned to full pay.\n \n As we se...